British retailer JD Sports to buy US rival Hibbett for $1.08 billion (updated)

Hibbett

23/04/2024 07:24

(Adds details throughout)
       April 23 (Reuters) - JD Sports Fashion  JD.L  has
proposed to buy American athletic-fashion retailer Hibbett Inc
 HIBB.O  for about $1.08 billion, the companies said on Tuesday,
as the British sportswear retailer expands across the
southeastern U.S.
    JD Sports, Britain's largest sportswear retailer, will pay
$87.50 per Hibbett share in cash, representing a premium of
about 20% to the U.S. firm's last closing price.
    The Bury, Greater Manchester-based company said it expects
to fund the deal and refinance Hibbett's existing debt through
its existing U.S. cash resources of $300 million and a $1
billion extension to its existing bank facilities.
        The enlarged group would have combined revenues of about
4.7 billion pounds ($5.80 billion) in North America, JD Sports
said, adding that the region's contribution to total sales would
increase to about 40% from the current 32%. 

    ($1 = 0.8108 pounds)

 (Reporting by Yadarisa Shabong in Bengaluru; Editing by Sherry
Jacob-Phillips)
 ((Yadarisa.Shabong@thomsonreuters.com; +91 9742735150;))